What is Force Majeure?
The term 'Force Majeure' has been defined in
Black's Law Dictionary, as 'an event or effect that can be
neither anticipated nor controlled'. It is a contractual
provision allocating the risk of loss if performance becomes
impossible or impracticable, especially as a result of an event
that the parties could not have anticipated or controlled.
Under the Malaysian contract law, there is no definition of
"Force Majeure"; at the same time, there is no
regulation in Malaysian law that prohibits parties from providing
for Force Majeure events, namely, that certain external
events may have the effect of ceasing contractual performance or
releasing the parties from their responsibilities under a
contract.
